Just a quick blurb this morning. Headlines yesterday and today report that the European Central Bank has announced that the February 29th LTRO (long term repo operation) will be its last. For those of you who follow me regularly you know that my bull market thesis has been predicated mainly on central bank proclivity to keep banks and economies liquid while long term deleveraging takes place. Well, if anything markets hate more in our present environment, it's central banks making pronouncements to cut off liquidity.
The Europeans have a different game plan than the FED and they don't care about the markets. We may see markets tank on February 29th or before on the "sell on the news" premise of trading.
The markets will tell us very soon whether I'm right.
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